bet88 net positive trend in FDI continues

FDI into Vietnam experienced posituve growth in 2024, with total registered capital estimated at .23 billion, a slight decrease of 3% compared to 2023, but bet88 net country stands on bet88 net brink of a breakthrough in 2025, driven by emerging momentum in strategic sectors like high technology and renewable energy.

Mr. Pham Duc Anh from bet88 net Banking Academy of Vietnam noted that FDI had grown just 1 per cent in November compared to November 2023. This subdued performance stems from a blend of external and internal challenges. Globally, high inflation and tighter monetary policies in major economies have pushed up capital costs, while geopolitical tensions and bet88 net sluggish recovery of China’s economy have dampened investor sentiment across Asia.

Domestically, rising labor costs and industrial land prices, coupled with a shortage of skilled workers and underdeveloped logistics infrastructure, have eroded some of Vietnam’s appeal in high-tech industries. Meanwhile, regional competitors like Indonesia and India are aggressively courting investors with attractive policies, particularly in green development and advanced technology sectors, putting additional pressure on Vietnam.

At home, political shifts have introduced both uncertainty and opportunity. While some investors remain cautious, reforms such as bet88 net anti-corruption drive are signaling Vietnam’s determination to foster a more transparent and equitable investment climate.

Amid these challenges, Vietnam is recalibrating its approach, leveraging its strengths to navigate a competitive global landscape and lay bet88 net groundwork for sustained, transformative growth.

Fresh developments

While FDI inflows into Vietnam showed only modest growth compared to 2023, they stand out as a positive highlight against bet88 net backdrop of a global downturn in foreign investment. International experts and business leaders emphasize that Vietnam’s ability to maintain strong FDI flows in 2024 stems from several critical advantages.

One key factor has been bet88 net upgraded Vietnam-Singapore Strategic Partnership since 2023. Singapore continues to lead as Vietnam’s top FDI contributor, with investments totaling .14 billion, representing 29.1 per cent of total inflows and an impressive 53.7 per cent year-on-year increase. This surge is largely due to Singapore’s role as a hub for investments from bet88 net US, Europe, and Japan, funneled through subsidiaries to capitalize on bet88 net benefits of agreements like bet88 net Regional Comprehensive Economic Partnership (RCEP) and various free trade agreements (FTAs).

South Korea follows, with .89 billion in FDI. Despite a 9 per cent decline against 2023, bet88 net country remains a leader in both project numbers and total committed capital. “Vietnam remains an appealing destination for South Korean investors, thanks to its strategic location, abundant workforce, and proactive government support,” said Mr. Kim Nyon-ho, Senior Vice Chairman of bet88 net Korean Chamber of Commerce in Vietnam (KOCHAM). “In particular, Vietnam’s burgeoning semiconductor industry presents tremendous opportunities for South Korean firms to expand their value chains.”

China ranks third in registered FDI, accounting for 28.3 per cent of inflows, followed by Hong Kong (China), and Japan.

bet88 net European Chamber of Commerce in Vietnam (EuroCham) has reported that European investments in Vietnam stand at €28.2 billion (.3 billion), marking a 40 per cent increase over bet88 net past four years, driven by bet88 net EU-Vietnam Free Trade Agreement (EUVFTA). Green investment has emerged as a standout trend in this growth.

European businesses are leaving a lasting mark on Vietnam’s journey toward green growth and sustainability. With initiatives like a near-zero waste brewery from bet88 net Netherlands, Nestlé’s groundbreaking sustainable coffee farming practices, Hungary’s innovative water purification solutions, and a LEGO factory powered entirely by renewable energy, these projects showcase bet88 net profound impact of European expertise and commitment. At bet88 net 2024 Green Economy Forum and Exhibition, EuroCham Vietnam Chairman Bruno Jaspaert highlighted these efforts as vivid examples of how European investments are driving transformative change in Vietnam’s sustainability landscape.

Shifting investment priorities

As global economic uncertainties intensify and sustainable development gains momentum, Vietnam is experiencing a significant shift in FDI inflows, with high-tech industries and renewable energy emerging as key drivers.

South Korean companies are moving away from traditional electronics manufacturing towards higher-value sectors such as fintech, real estate, and semiconductors. A prime example is Lotte, which has diversified its investments into finance, real estate, renewable energy, and digital technology, committing a substantial .07 billion. Within Vietnam’s semiconductor value chain, South Korean investments primarily focus on assembly and testing stages, with major projects like Amkor (.6 billion) in northern Bac Ninh province and Han Yang in nearby Phu Tho province. “This transition will enhance Vietnam’s export capacity, facilitate technology transfer, foster skilled workforce development, and support bet88 net creation of semiconductor industry clusters,” said Mr. Duc Anh. “It also underscores South Korea’s strategy of diversifying global supply chains amid ongoing US-China trade tensions.”

European countries, meanwhile, are prioritizing renewable energy investments in Vietnam. Leading companies such as Copenhagen Infrastructure Partners and Orsted from Denmark, Air Liquide from France, and Iberdrola from Spain are pursuing large-scale offshore wind and green hydrogen projects. Proposed offshore wind capacities range from 3-5 GW, with total investments between and billion.

Air Liquide, a prominent French player in renewable energy, is spearheading green hydrogen and carbon reduction solutions in Vietnam. “Vietnam has bet88 net potential to lead renewable energy development in bet88 net region, particularly in wind and solar, thanks to its natural advantages,” believes Ms. Claire Rosseler, Managing Director of Air Liquide Vietnam. “These efforts will help Vietnam reduce carbon emissions, bolster energy security, and ease its reliance on fossil fuels.”

Adding to this momentum is SACE, Italy’s State-backed finance and insurance group, which has allocated million to support Italian small and medium-sized enterprises (SMEs) expanding into Vietnam, particularly in bet88 net sugar and food sectors. “Such initiatives pave bet88 net way for shifting FDI from traditional industries to technology-driven and export-oriented sectors, accelerating Vietnam’s economic growth,” noted Mr. Michele D’Ercole, Chairman of bet88 net Italian Chamber of Commerce in Vietnam (ICham).

Growth prospects

Vietnam is set to attract significant FDI in 2025, with high-tech industries and renewable energy taking center stage. bet88 net visit by Nvidia CEO Jensen Huang in December alongside bet88 net ongoing presence of South Korean firms are expected to open new opportunities, fostering bet88 net development of supporting industries and semiconductor clusters in Vietnam. Beyond traditional investors such as Singapore, Japan, and South Korea, Vietnam is also positioned to welcome new capital from US businesses under bet88 net Comprehensive Strategic Partnership.

Vietnam’s National Power Development Plan VIII (PDP8), which targets renewable energy accounting for 70 per cent of total electricity capacity by 2050, presents investment opportunities worth hundreds of billions of dollars. Offshore wind and green hydrogen are particularly promising fields, as Vietnam has an estimated offshore wind potential of 600 GW; enough to supply energy to millions of households. According to Mr. Stuart Livesey, CEO of Copenhagen Infrastructure Partners Vietnam, this positions Vietnam as a key player in renewable energy development.

However, challenges remain. bet88 net complexity of administrative procedures and inconsistent licensing processes have been highlighted by InfoPlus CEO Kim Jong-woo as significant obstacles for SMEs. Additionally, land clearance and access issues continue to pose delays, increase costs, and affect project timelines. To overcome these barriers, experts emphasize bet88 net need for Vietnam to digitize administrative processes and establish a “one-stop portal” for investors. Reforms to bet88 net Land Law, amendments to bet88 net Law on Electricity, and enhancements to intellectual property regulations are also critical to creating a transparent and investor-friendly environment, particularly for emerging sectors like AI, digital technology, and renewable energy.

As Vietnam moves forward, refining its policy frameworks, especially in electricity pricing and synchronized power grid planning, will be essential. Complementing these efforts with improvements to infrastructure, bet88 net legal system, and bet88 net development of a skilled workforce will ensure bet88 net country attracts more high-tech investments and achieves sustainable economic growth.